MEB returned. Discharge with 20% severence.. VA disability question

[mrgregory29]

My wife's MEB returned with discharge with 20% Severance for both her knees. Now we've heard two different things as far as VA disability is concerned. When she files her claim through the VA will they just take 20%/$250 from her overall disability to pay it back or will they take all of it to pay back the severance?

 

[Bad Knees]

I've heard that the VA just holds your checks until the entire severance is recouped...